The state corporate income tax receives a great deal of attention from those interested in state and local public finance despite the fact that this revenue source provides a relatively small share of state tax revenues.

This article updates the article that appeared in the Winter 2007 issue of the Multistate Tax Commission Review which, in turn, updated a similar article that appeared in the Fall 2000 issue of that Review. The previous article was written at a time when state corporate income taxes were growing at unprecedented rates. However, in the recent past, this revenue source has been growing much more slowly. This article shows the long-term decline in this revenue source in terms of its importance in state and local finance, of its decline relative to other state and local taxes initially imposed on businesses, and its decline relative to the base of the tax-corporate profits.